Can ThorChain’s BNB Chain Integration Elevate Its Grounded TVL?
ThorChain, a decentralized liquidity protocol, recently announced the successful integration of the BNB smart chain after a community vote. This achievement brings ThorChain, a cross-chain Decentralized Exchange (DEX), one step closer to fulfilling its vision of attracting a new wave of liquidity providers and users. The protocol already operates on multiple blockchains, including Cosmos (ATOM) and Ethereum (ETH), and the addition of BNB breathes new life into the project, potentially opening the door for unprecedented growth and adoption.
However, amidst these optimistic developments, it is important to address ThorChain’s Total Value Locked (TVL). Like many projects in the DeFi ecosystem, ThorChain has witnessed a significant slowdown in TVL growth. Previously valued at over $500 million, TVL is now a mere $98.89 million, as reported by DefiLlama. TVL serves as an important indicator of protocol health, reflecting the entry of sediments into the ecosystem, which increases the safety and activity of the chain.
Unfortunately, TVL ThorChain has remained stagnant since April, indicating a lack of unique deposits on the protocol for a long time. Nevertheless, ThorChain was able to take advantage of BNB Chain’s established user base, which boasts millions of active users. Terminal Token data reveals that the 180-day daily active users are steadily increasing, reaching around 1.5 million. The spike signals more and more unique public addresses are involved with the protocol’s decentralized application (dApp) smart contracts, a critical metric for any project.
Despite partnering with BNB Chain, ThorChain’s development activities have failed to generate much excitement within its community. Santiment reports a metric score of 0.024, implying a decrease in building activity. This decline shows a lack of focus on network repair. Conversely, an upward trend in this metric will indicate a higher number of public GitHub repositories displaying active development efforts.
Regarding the original RUNE token, there has been no significant price fluctuation. At the time of writing, the price of RUNE is $1.08. However, token volume has experienced a significant jump, reaching 28.39 million, indicating an increase in transactional activity.
ThorChain’s integration with the BNB smart chain has great potential to attract liquidity providers and users. However, TVL protocol and development activities require attention to ensure continued growth and community involvement. Meanwhile, the RUNE token remains stable in price but shows high transactional volume, indicating ongoing activity in the ecosystem.
